I don’t know if you’re like me, but I’ve seen a little extra cash in my checking account lately. After a view of my expenses pre-pandemic and some research on average saving by career remote-workers, we’ve summarized the five most considerable costs you’ll cut by working from home.
The Commute: $2,600
According to the Citi ThankYou Premier Commuter Index, the average American commuting cost is $2,600 annually or roughly $10/day. Given that over 97% of Americans commute by car, bus, or rail (Bloomberg TV, 2019), it is safe to say that number doubles for a family with both parents working. Finding a company to work for with a flexible work policy that allows you to commute 2 or 3 days per week would cut this cost in half.
Eating Out/Happy Hours
Arguably one of my favorite things to do midway through the day is sneak out of the office, enjoy a quick lunch from a local restaurant with a few co-workers or friends, or send out the 4PM text asking, “Who’s in for a happy hour?”. But these expenses add up quickly. In a report conducted by VISA, it showed Americans spent $53 per week on lunch or eating out. That’s $200 per month, which can easily be saved or go towards one or two quality evenings with friends and co-workers.
Clothes and Dry Cleaning
Cubicly believes that your home office attire should mimic that of the office with a tilt toward casual. If you traditionally wear a suit and tie, perhaps a sports coat and open-collar shirt would suffice, or if you traditionally wear a button-up and jeans, the occasional t-shirt could work when you’re at home. Although we aren’t suggesting cutting your wardrobe attire completely, think of the number of clothes you need to be presentable in the office and home. The Bureau of Labor Statistics estimates that Americans spend $161 per month on clothing and clothing expenses. One or two fewer suits per year and fewer trips to the dry cleaner will go a long way in saving some extra cash.
Rent/Mortgage Expenses
This calculation isn’t immediate, but trading your city center apartment for a house in the burbs may be worth it if you have an effective telework policy. An article by Forbes reported by Key Bank says that the average rent in a U.S. city is $1,848 per month. In the burbs, rent is $1,269 per month – nearly a $600 difference. If you don’t have to worry about commuting to the office five days per week, you may settle for a longer commute during office days to gain more living space at a lower cost.
Your Time
I know what you’re thinking; how does my time help me save/make money while working from home? But I think about it! The time you spend commuting gives you an additional working day in the week to dedicate to bettering yourself and those around you. Perhaps there’s a home improvement project job that you are perfectly capable of doing if you had the time, or maybe you pick up a side-job, or even start up a new business. These options wouldn’t be possible if you spend up to 6 hours per week getting beat up on your commute to and from work.
Let’s face it, working from home certainly has some financial perks associated with it. Speak with your manager and human resource officer on what telework policies are available for you post-pandemic.
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